BPPL secures US$ 15 million from the U.S.International Development Finance Corporation
Sri Lanka’s plastic recycling capabilities and infrastructure are set to soar with BPPL Holdings PLC, the country’s pioneer in the field, securing long-term funding of US$ 15 million from the International Development Finance Corporation (DFC) ofthe United States of America.
The funds raised from DFC, the development finance agency of the United StatesGovernment, will enable BPPLto expandits monofilament and polyester yarn operations, which use plastic waste as its primary raw material.Thiswill generate greater export earnings for Sri Lanka whilst addressing the hazardouspractices of plastic disposal-oneof the country’s critical environmental problems.
BPPL is one of Southeast Asia’s largest brush manufacturers and Sri Lanka’s only polyester yarn producer, driven by state-of-the-art production technology and an unwavering commitment to sustainability. Theycollect and convertwaste plastic to produce brush ware, monofilaments and recycled polyester yarn, almost all of which are exported. The company’s recent efforts have won them several accolades, such as from Forbes Asia, ranking them amongst the top 200 companies under US$1 billion in revenue in Asia in 2021.
The new funding will be used to expandoperations to double the number of PET plastic bottle collection centres and the company’s bottle washing capacity, and to enhance monofilament and polyester yarn production by 40% and 55% per annum, respectively, over the next 4-5 years.
Going deeper, efforts to improve and strengthen the waste plastic collection network and infrastructure on the island will have a significant socio-economic impact.Currently, BPPL has approximately 480waste plastic collection entitiesthat will benefit from this development,enhancinglivelihood and income.Through DFC’s support, BPPL is poisedto expand this network, creating greater employment within and beyond the company.
On the environmental front, thisfunding willincrease theshare of waste plastic collectedin the country to approximately 6,000 tons per annum, the company noted. This would increase the productive use of waste plastic while reducing the environmental damage caused by plastics ending up in landfills or water bodies.
“BPPL’s success in securing thisfunding from one of the world’s leading providers of development financeis a testament to our strength and stability, as well as an endorsement of our mission,” BPPLHoldings PLC Managing Director and Chief Executive Officer, Dr. Anush Amarasinghe said.“This serves as a timely boost, assisting BPPL tofurther enhance many key aspects of our operations. The developmentthat will come about through this initiativewill positively impact the country economically, socially and environmentally.”
“DFC’s investment in BPPL will promote transformative and sustainable development in Sri Lanka,” said DFC Chief Climate Officer Jake Levine.“Together, DFC’s financing and BPPL’s proven track record will boost economic growth while helping to advance a vision for a circular economy, which is ultimately a critical part of the work to address the climate crisis.”
The loan provided by DFC has a 10-year tenure with a three-year grace period and is subject to regulatory approvals.
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